Handmade chocolate truffles, coffee beans from around the world, crystal sea salts, freshly baked bread and nearly every imaginable type of cheese. Borough market in London is a food lovers' paradise. But more than this, it is a symbol of a great British tradition.

Markets mark the history of this country. While it seems that "clone town Britain" is on the rise, with independent retailers slowly vanishing at the expense of supermarkets and chain stores, the market remains a feature of many city centres. However, their continuing presence has not been without a battle. With supermarkets offering convenient one-stop shopping, markets are beginning to suffer.

The average stall occupancy rates are 75% and falling. An all-party parliamentary committee reported that with 20% of all independent shops closing between 2000 and 2004, independent retailing may die out before 2015 if urgent action is not taken.

In Queen's market, Newham, east London, out of the 160 shops and stalls, there is only one chain store, with every other trader being independent. The concentration of independent retail is unprecedented.

Despite fierce competition from chain stores, markets show they have the ability to thrive. Research by national market organisations found that over £1.1bn is spent at market stalls each year. The industry offers employment to more than 96,000 people. Leicester market, for example, which attracts 3 million visitors each year, makes a profit of £700,000 per year for the council.

"Clearly markets still contribute to the economy," says Graham Wilson, chief executive of the National Association of British Market Authorities. "People just assume that they will always be there, but we need to redefine the role of markets for consumer needs. Where this has been addressed, you can see the benefits accruing."

This is clear at Leicester market - home to stalls of fresh produce, vintage clothing and even pets. Here a dedicated team is in place to promote the market. It is led by Faizal Osman who believes that being creative and having a broad vision about the potential for growth is essential to its success.

"The problem is that most market managers have tunnel vision," he says, "It is not just about how I can let a stall but you need to look at the bigger picture, see what events are going on around you and try link them back to the market."

Lack of investment

Mr Osman is brimming with ideas. With several universities based nearby, he knows that students on tight budgets are a key consumer group and so, at the beginning of each academic year, he ensures freshers' weeks are visited to promote the market. Whatever the event - energy saving sessions, educational school visits or seasonal holidays - Mr Osman ensures that the market is used as a base.

"Supermarkets have huge marketing budgets and staff; you can't compete with that," he says, "I try to think of how we can complement that; what they do that we can beat them at; things such as personal service. And also trying to encourage my traders to sell smaller portions and install portable credit card machines so they can up their game."

Borough market echoes the sentiments. Gary Voight, a fruit and vegetables trader at Borough for six years, believes the soaring success of the market comes down the trustees who voluntarily run the market. "They do their best to publicise it, there's parking spaces and the rents are good value," he says. The market committee at Borough picks licence-holders carefully, Mr Voight says, to make sure that stall-owners only sell quality food.

"They ensure there is variety and no fly-by-night traders out to make a quick buck," he says. "As a result, the market has thrived and helped to regenerate the whole area around it. I am confident it will continue to grow and grow."

It is a different picture over the river in north London at Chapel market. Thirty years ago, traders say, it was heaving and the road so packed with customers that mothers had to carry their prams over their heads to get through the crowds. To walk just 100 yards would take at least half-an-hour.

Today, customers are so few and far between, there is enough space to play cricket, says Gary Curtis, a fish trader.

While Islington councillor George Allan, executive member for customer focus, says money has been used to refurbish the market with road resurfacing and new drains, Mr Curtis says that a lack of investment by the council has left Chapel market with poor electricity, inadequate toilets and lack of parking for visitors.

"I can't see this market going another 20 years," says Mr Curtis. "I've taken photos of the stall so I can show my grandchildren one day what the family used to do. It's so disheartening." Nevertheless, many believe markets have a strong future as long as they adapt and economists point to markets as effective business structures. In many of these trading grounds, seventh generation traders can be seen pitched up next to new sellers. "If someone turns up here at half seven in the morning with £10 they can have a stall. That's what markets are all about, having a table to sell your wares," says Mr Osman

Sir Alan Sugar started his business empire on a stall in an East End market. And in October, Dunelm Mill, which started as a curtain stall in Leicester market in 1979, floated on the stock market for a hefty £340m. It plans to open 150 superstores across the country.

Food deserts

With many areas around the country being designated by councils as "food deserts", markets are also able to encourage healthier eating. Prices at markets in Lewisham and Walthamstow in London were found to be up to 34% cheaper than the local supermarkets, a study by the London Food Commission found.

And the benefits stretch to beyond residents of the area. Queen's market has visitors from as far as Brighton, East Anglia and Bristol.

Back at Leicester market, Mr Osman is gearing up for the holiday season, a time when specialist stalls such as continental, farmers' and Christmas markets which are already rising in popularity, are favoured even more.

"Change happens," says Mr Osman, "You just have to work with it."

And with this motto it seems this great British tradition can be saved, so that in years to come for traders like Gary Curtis their stall might be a reality and not just a photograph.